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Problem $4-24($Algo$)$ Cash budget $[$LO$4-2]$

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Graham Potato Company has projected sales of $$13,800$ in September, $$16,500$ in October, $$23,800$ in November, and $$19,800$ in December. Of the company's sales, $25$ percent are paid for by cash and $75$ percent are sold on credit. Experience shows that $40$ percent of accounts receivable are paid in the month after the sale, while the remaining $60$ percent are paid two months after.

Determine collections for November and December.

Also assume Graham's cash payments for November and December are $$20,000$ and $$12,500,$ respectively. The beginning cash balance in November is $$5,000,$ which is the desired minimum balance.

a$.$ Prepare a cash receipts schedule for November and December.

Mc

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